Syriza’s new contract between Greece and Europe

On Sunday 8 February 2015, Greek Prime Minister Alexis Tsipras explained the government’s policy commitments. Thanks to AnalyzeGreece and GreekReporter, we are happy to publish excerpts from his statement.

The new contract between Greece and Europe which will be reflected in a Medium Term Plan for National Reconstruction, respects the Eurozone operating rules, but does not condemn the Greek economy to eternal recession based on absurd and unreal requirements on primary surpluses, which are a different name of austerity. I want to reassure the Parliament and the Greek people we are steadily working towards a viable agreement with our partners. And I am optimistic that we will succeed. Because that agreement is at the same time a signal that Europe remains focused on its democratic principle and tradition of respecting the popular will.

Europe should not repeat the mistakes of its dark past. It should not lead an entire people into humiliation. Never again should we live the era of monsters. Never again should we feed into the hatred among peoples, but instead, promote understanding and solidarity. This is today the challenge for Europe. In the first five months of negotiations with Europe we have before us a great challenge: To vindicate the expectations of the Greek people for the radical reform of the State. Because without this radical reform, even with the best possible deal for the debt, the problem will return.

The Greek people have given us a clear mandate for a battle. A battle against the long term ills of the Greek political system, a battle with the intertwined interests that build this state. Because it was not us who built and managed this state of clientism and of waste. And this is why it is we, who are capable of changing it; to implement the country’s institutional reconstruction. That reconstruction has already begun by changing the structure of the government, as a first step towards rationalizing public administration…

The struggle against corruption

Our first unrelenting struggle that we will carry out at any cost is the struggle against corruption and the intertwined with the political system interests of the economic oligarchy. In this Context we will immediately mobilize the Economic crime enforcement agency so as to scrutinize, as a priority, the list of big bank account holders: a) the list of the Authority for Combating money laundering, b) the Lagarde list, c) the Lichtenstein list…

A significant reform of the taxation system

There can be no institutional and productive reconstruction without a significant reform of the taxation system. The low tax revenue during the ‘90s and the 2000s was the main reason for the inability of the country to reduce its external debt. Even at the time when the Greek economy was growing at around 4% annually, our debt remained pinned at 100% of GDP, i.e. it was increasing in absolute terms…

Our government wants to be the voice of the people…

We proudly declare that what we will not negotiate is the history and the dignity of our people. Our government wants to be the voice of the people, to express the people’s will. We wish to be every word in our constitution. We took an oath on the Greek constitution and we will honor it to the fullest extent. Our government’s slogan is: Democracy everywhere. Austerity did not just impoverish our people but it deprived them from the right to decide. The new government brings a new understanding of the role of the welfare state. We prioritize its support and enlargement. A new social contract with Europe is necessary not only to save society but also to stop deflation and economic recession.

Full list of the new Government’s policies

1. From Wednesday morning, there will be a focus on the humanitarian crisis. Measures will include free food, electricity, shelter and medicine for families that have been hurt by the economic crisis. “Greece cannot be a European country when thousands are hungry, without electricity,” he said.

2. School guards and cleaners would be returned to their posts.

3. a) Administrative changes, something that began with the shrinking of ministries to 10 for a fast-paced structure. The abolition of political privileges eg. Government cars worth over 700,000 euros at a time when people are suffering are being sold off and said that the time has come to no longer provide Ministerial cars. Tsipras also said that one of the three government jets is being sold.

__ b) The cost at Parliament will be slashed by 30% and the personal security of Parliament by 40%. He said that the police force needs to leave the Parliament and go to neighborhoods where they are needed.

__ c) New technologies will be used for faster service and help limit corruption. No public service will require documents that another public service already has in order to limit bureaucracy.

__ d) The Kallikratis plan for municipality zones will be reviewed for the sake of greater efficiency.

4) a) The biggest battle will be against tax fraud that Tsipras described as the greatest reason that led Greece to where it is today. The electronic crime squad will immediately be mobilized to check the Lagarde list and Liechtenstein list.

__ b) Customs offices will be put under scrutiny.

__ c) Body of public revenue officers will be moved to check the cost of supplies and put an end to bribery.

__ d) Loans without collateral will no longer be accepted.

5) An abolition of asylum to the Bank of Greece and the Hellenic Republic Asset Development Fund (HRADF), stating that all people are equal under the law.

6) An examining body for what led Greece to the verge of bankruptcy will be created to investigate who is responsible for the country’s state. Public contracts will be scrutinized. “Public funds are not for the interest of oligarchies,” he said, adding that he wants to cut the triangle of corruption between banks-politicians-mass media.

7) The Greek radio and television network (ERT) will be recreated after it was shut down by the previous government. Funds will come from the duty paid by citizens in their electricity bill. Regarding media, he also said that television controls will also be enforced. An end will be given to the unpaid loans of private TV networks.

8) “Democracy everywhere,” is the slogan that Tsipras referred to. A social state of justice to ensure the freedom of all individuals. The police will ensure the protection of citizens from crime. In this framework, the neighborhood policeman will return. Reinforced training will be offered to policemen.

9) For the first time in Greece, there will be a special ministry dealing with migration as is the case with many other countries. An integrated policy focused on protection and inclusion. The immediate voting of a law for 2nd generation immigrants is a priority for this department.

10) Tax inequalities will be dealt with. “Tax justice is an unknown word for our country,” he said, pledging that there will be an end to this unfairness. “Each citizen and business will contribute to the country as the constitution demands.” A joint tax system will be created, with those having the most assets required to offer more, rather than the other way around. People who earn less than 12,000 euros per year will not pay taxes. The unified property tax (ENFIA) will be replaced with a large tax, though the final payments for 2014 will need to be paid.

He spoke of the haemorrhage from unpaid taxes that undermines Greece’s independence. For this reason, measures will be taken to settle these debts. The measure for tax payments in 100 installments will continue.

11) A return to employees’ rights. He said that most employees have been harmed by the Memorandum. Profits have increased on the backs of employees. Employees have over the last few years seen their rights diminished and wages lowered. SYRIZA does not believe that competitiveness is based on cheap labor but innovation, technology and quality of service. He said that his government aims to collaborate with the international employment organization. He called for a return to collective contracts and a strict framework for protection against mass lay-offs. Minimum wage will be lifted to 750 euros by 2016 and equal wages for equal work regardless of age.

He said unemployment is a ticking “time bomb” for Greece. Support of SMEs, decrease in unemployment, combatting corruption and tax evasion are some of the principles Tsipras said he wants to enforce. He noted, nonetheless, that this is not possible with programs that leave no leeway for development to the Greek economy. He underlined that without renegotiating the debt, Greece is condemned to slide down a recession spiral.

12) He said that another victim of the economic crisis is social welfare and that his government believes in the dignity of citizens. He committed himself to save social welfare, especially after the Private Sector Involvement (PSI) that placed the burden of saving banks on social institutions. The government will not impose the e-mailed promises made by Former Finance Minister Gikas Hardouvelis and Former Prime Minister Antonis Samaras that spoke of an increase to retirement age and pension cuts. Low pension earners who receive under 700 euros per month will receive the 13th pension check. A fund of national wealth and social insurance will be created that will be autonomous. He wants to use Greece’s national assets to fund social problems rather than sell off these institutions.

13) “Education will play a central role in restructuring the country,” he said, adding that education is what will make our country competitive even though the education system has been downgraded during the economic crisis. He said that changes will not be full of surprises but will come through discussions. A Research and Innovation Minister was appointed because the new government believes that research in tertiary education is a long-term investment. Hopefully, this will attract some of the young people who left Greece and are currently employed at universities and medical centers abroad.

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2 comments for “Syriza’s new contract between Greece and Europe”

anthony langford

10 March 2015 at 9:27 pm

income tax fraud being committed by Arati AND Johnny Karipis from top flat 15 Mavriomichili Eleftheroupolis Kavala .she had alaundery business in ELEFTHEROUPOLIS a few years ago until she went bankrupt, she took her equipment to her fat, and now does her laundery and pressing business from her flat. clothes curtains and sheets brought regularily to the flat,they are collected from the flat or johnny karipi delivers them in his car. they are paid cash in hand no receipts , tax free.neighbours are moaning about the business being run and the money being made but are too afraid to say anything.

All the promises sold down the river because Tsipras has NO fight in him
to protect the Greek people(I mean not the super rich)Austerity kills Mr Tsipras therefore the answer must be NO!
How come you accepted the so called “blackmail” of the EU?This without consulting your own party!!!!!!
This man and his”social democrat” transformation has deserted the Greek people as did PASOK many years ago when the foolishly took on so much debt!Of course the banks were reckless as well lending all those billions!!!